Welcome Guest
Log In | Register )
You last visited January 21, 2017, 2:27 pm
All times shown are
Eastern Time (GMT-5:00)

Judge rules NJ couple's lottery annuity payments can't be taxed retroactively

Topic closed. 25 replies. Last post 3 months ago by KY Floyd.

Page 2 of 2
55
PrintE-mailLink
Raven62's avatar - binary
New Jersey
United States
Member #17843
June 28, 2005
51178 Posts
Offline
Posted: October 15, 2016, 7:42 am - IP Logged

Smash

Zoo Jersey Courts have a rare lucid moment.

Now if they could only recognize the Second Amendment as Law.

In Tyranny: The war between good and evil is over: The forces of evil have won.

A mind once stretched by a new idea never returns to its original dimensions!

    Gleno's avatar - Lottery-001.jpg
    New Jersey
    United States
    Member #80354
    September 25, 2009
    705 Posts
    Offline
    Posted: October 15, 2016, 7:52 pm - IP Logged

    Throw the Bums Out!

    Drum

      Avatar
      Maryland
      United States
      Member #162434
      January 2, 2015
      941 Posts
      Offline
      Posted: October 16, 2016, 5:27 am - IP Logged

      How about the citizens of NJ do a vote at the end of the lawmakers term and if they don't like the job done they Retroactively LOSE their pay Thumbs Up

        mypiemaster's avatar - 2015021003pileofcash
        JACKPOT HUNTER

        United States
        Member #141034
        April 2, 2013
        1419 Posts
        Offline
        Posted: October 17, 2016, 2:42 am - IP Logged

        Looks like someone is looking for free money to get more HOHOS

        Seek and ye shall find -Matt. 7:7 ...Ask and ye shall receive -John 16:24 ...Give and it shall be given unto you -Luke 6:38 ...Be careful what you ask for!!! -Mypiemaster 1:1

        Having Money Solves Problems That Not Having Money Creates Yes Nod ****John Carlton****

          Think's avatar - lightbulb
          Marquette, MI
          United States
          Member #20541
          August 20, 2005
          710 Posts
          Offline
          Posted: October 17, 2016, 12:16 pm - IP Logged

          The Michigan lottery used to be Michigan  tax free before about 1988.  People who won before that who got annuities were slapped with the state income tax in 1989.  They sued and won and the rest of their annuity payments were free of Michigan tax.  People who won after that had to pay the tax.  Michigan now has the same type of Schizo policies with anonymity.  Some winners can remain anonymous while others can't!

            cbr$'s avatar - maren
            Cordova,Al.
            United States
            Member #104482
            January 15, 2011
            5430 Posts
            Online
            Posted: October 17, 2016, 2:07 pm - IP Logged

            I am glad the judge rule in this couple favor. Asking for retroactive tax payments after the   win. This couple win when it was tax free. When they win the new law wasn't  on the books  yet. It sound like NJ. just want free tax money. 

              Artist77's avatar - batman14

              United States
              Member #121745
              January 16, 2012
              4984 Posts
              Online
              Posted: October 17, 2016, 8:02 pm - IP Logged

              But normally money is taxed in the year it is received, not owed. I like this decision but doubt it will become the precedent in all jurisdictions. I guess the new statute made it the deciding factor.

              J'aime La France.

                Avatar
                NY
                United States
                Member #23835
                October 16, 2005
                3502 Posts
                Offline
                Posted: October 18, 2016, 12:05 am - IP Logged

                There's no reason this case would set a precedent, since it turned on long established principles of contract law. The deciding factor was that in exchange for buying a lottery ticket the state promised that any winnings wouldn't be subject to state taxes, and they can't unilaterally change the terms of the contract.

                  Avatar
                  New Member
                  Upstate, NY
                  United States
                  Member #152608
                  February 19, 2014
                  6 Posts
                  Offline
                  Posted: October 18, 2016, 6:29 pm - IP Logged

                  So what happens if you choose the annuity in a state where there is a tax on the lottery winnings already but the tax percentage either increases or decreases over the period of the annuity?  Are you subject to the increase or awarded with the decreased percentage over the remaining period of the annuity? 

                  In the case of New Jersey has a legal precedent been set so that going forward if a tax increase on lottery winnings were to happen that winners under the lower tax percentage would not be subject to the increase? 

                  Or does a no tax versus some tax scenario make that whole argument obsolete?

                    maximillions's avatar - Lottery-006.jpg
                    New Member

                    United States
                    Member #168791
                    September 17, 2015
                    10 Posts
                    Offline
                    Posted: October 18, 2016, 7:23 pm - IP Logged

                    Here is an excellent example for why one should choose the cash value option and avoid future shenanigans and the ensuing, expensive legal hassles

                      Avatar
                      NY
                      United States
                      Member #23835
                      October 16, 2005
                      3502 Posts
                      Offline
                      Posted: October 19, 2016, 12:37 am - IP Logged

                      So what happens if you choose the annuity in a state where there is a tax on the lottery winnings already but the tax percentage either increases or decreases over the period of the annuity?  Are you subject to the increase or awarded with the decreased percentage over the remaining period of the annuity? 

                      In the case of New Jersey has a legal precedent been set so that going forward if a tax increase on lottery winnings were to happen that winners under the lower tax percentage would not be subject to the increase? 

                      Or does a no tax versus some tax scenario make that whole argument obsolete?

                      Did a state ever promise you that your income tax rate would never change?